Yesterday’s signals were not triggered as there was no bullish price action at 1.2508.

Today’s GBP/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm London time today.

Long Trades

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2372, 1.2324 or 1.2250.

* Put the stop loss 1 pip below the local swing low.

* Move the stop loss to break even once the trade is 25 pips in profit.

* Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

Short Trades

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2436 or 1.2508.

* Put the stop loss 1 pip above the local swing high.

* Move the stop loss to break even once the trade is 25 pips in profit.

* Take off 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

GBP/USD Analysis

This pair fell strongly yesterday after positive U.S. economic data boosted the greenback, and this move was particularly strong here against the British Pound. It now looks as if the bearish rejection of the key resistance at 1.2610 was an important moment for this pair. Zooming out to a long-term chart shows that the price remains within a long-term consolidating triangle. The long-term trend is still bullish but the price probably has further to fall over the short term. The price may now begin to bottom out between 1.2375 and 1.2400.

There is nothing due today regarding the GBP. Concerning the USD, there will be a release of Crude Oil Inventories data at 2:30pm London time.